India Finalises $2 Billion Deal To Lease Nuclear-Powered Submarine From Russia

India will lease a nuclear-powered attack submarine from Russia for about $2 billion, concluding nearly a decade of negotiations. The agreement comes just ahead of Russian President Vladimir Putin's visit to New Delhi this week, reinforcing the depth of bilateral defence and energy cooperation. The submarine-intended solely for training-will be delivered within two years, though timelines could shift due to the project's complexity.

People familiar with the matter said discussions over leasing the submarine had long remained stuck over price issues. Negotiations have now been settled, and an Indian team visited a Russian shipyard in November to review progress. Under the lease terms, the submarine cannot be deployed in active combat and will instead support training and development of India's nuclear-submarine operations. The lease is for 10 years, similar to the previous Russian submarine India returned in 2021, with maintenance included in the contract.

Putin will arrive in India on Thursday, marking his first visit since Russia's full-scale invasion of Ukraine. His meeting with Prime Minister Narendra Modi aims to reaffirm strategic ties at a time when Modi is expanding relations with both Russia and China. This comes as India asserts its strategic autonomy following US President Donald Trump imposing 50% tariff rates on Indian goods. India is currently negotiating a trade arrangement with Washington to reduce these duties, which were introduced as part of Trump's pressure campaign urging New Delhi to stop purchasing Russian oil while he seeks leverage over Putin to end the conflict.

Ahead of Putin's visit, Navy Chief Admiral Dinesh K. Tripathi said commissioning of the attack submarine was expected "soon," without giving details. The vessel will be larger than India's existing two nuclear-powered submarines. The Ministry of Defence and Ministry of External Affairs declined to comment, as did Russia's Foreign Ministry, Defence Ministry and Rosoboronexport.

According to the Nuclear Threat Initiative (NTI), India has already developed submarine-launched ballistic missiles (SLBMs), giving it a nuclear triad with land, sea and air delivery capabilities. Nuclear-powered submarines are more advanced than diesel-electric ones, offering longer submersion, quieter operations and better endurance-significant advantages for operations across the Indian and Pacific Oceans. India currently fields 17 diesel-electric submarines, NTI noted.

India's strategic nuclear submarines, built domestically, are designed to carry SLBMs. The country is also constructing nuclear-powered attack submarines capable of pursuing enemy vessels.

Globally, interest in nuclear-powered submarines is increasing. Australia is developing similar platforms with the UK and US under the AUKUS initiative, while South Korea is working with the US on its own nuclear-sub program. Historically, only the US, UK, France, China and Russia possessed the capability to build and operate such vessels.

India has reduced its dependence on Russian defence systems by diversifying purchases from the US and Europe, yet it continues to rely on Moscow for critical platforms such as nuclear-powered submarines. Despite criticism from Trump, New Delhi maintains robust ties with Russia. In a July post on Truth Social, Trump said India buys "the vast majority" of its military equipment from Russia and is one of Moscow's largest energy customers alongside China. The US has pressed New Delhi to halt Russian oil imports, even imposing a 25% secondary tariff on US imports of Indian goods beginning late August.

India's nuclear capabilities continue to expand. According to Tripathi, the country's third ballistic missile submarine will join its nuclear forces next year. Additionally, India is constructing two nuclear-powered attack submarines, Bloomberg News reported.

(With PTI Inputs)